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DECREE

Detailing the Commercial Law regarding goods and services banned from business, subject to business restriction or to conditional business

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 14, 2005 Commercial Law;

At the proposal of the Trade Minister,

DECREES:

Article 1.- Governing scope

This Decree details the Commercial Law regarding goods and services banned from business; goods and services subject to business restriction; goods and services subject to conditional business and conditions for dealing in such goods and services.

Article 2.- Subjects of application

This Decree applies to traders according to the provisions of the Commercial Law and other organizations and individuals conducting trade-related activities in Vietnam.

Article 3.- Application of relevant laws and treaties

1. Commercial activities related goods and services banned from business; goods and services subject to business restriction; or goods and services subject to conditional business must comply with this Decree and relevant laws.

2. Where a treaty to which the Socialist Republic of Vietnam is a contracting party contains provisions on goods and services banned from business; goods and services subject to business restriction; or goods and services subject to conditional business, which are different from those of this Decree, the provisions of such treaty shall apply.

Article 4.- Lists of goods and services banned from business; those subject to business restriction and those subject to conditional business

1. Promulgated together with this Decree are the following lists of goods and services:

a/ The list of goods and services banned from business (Appendix I);

b/ The list of goods and services subject to business restriction (Appendix II);

c/ The list of goods and services subject to conditional business (Appendix III).

2. In case of necessity, the Trade Minister shall propose to the Government amendments and/or supplements to the lists mentioned in Clause 1 of this Article.

Article 5.- Goods and services banned from business

1. Traders as well as other organizations and individuals engaged in trade-related activities in Vietnam are strictly prohibited from dealing in goods and services on the list of goods and services banned from business, except for the cases specified in Clause 2 of this Article.

2. The supply of goods and/or services on the list of goods and services banned from business, promulgated together with this Decree, in specific cases must be permitted by the Prime Minister.

Article 6.- Conditions for dealing in goods and services subject to business restriction

1. Activities of dealing in goods and services on the list of those subject to business restriction must satisfy the following conditions:

a/ Goods and services involved in business must fully comply with the provisions of law;

b/ Traders dealing in such goods and services must be enterprises established and having made business registration according to the provisions of law;

c/ Business establishments must satisfy the requirements on techniques, equipment, facilities, business process and other standards according to the provisions of law;

d/ Managerial and technical staff and employees personally engaged in sale and purchase of goods, and employees personally engaged in the provision of services must satisfy the requirements on professional qualifications and experience and be physically fit according to the provisions of law;

e/ The scope, scale, duration and places of business and the number of traders dealing in goods and/or services subject to business restriction must conform with particular management requirements and the planning on development of the network of establishments dealing in such goods and/or services in each period;

f/ Business traders must have permits for doing business with goods and/or services subject to business restriction, which are granted by competent agencies according to the provisions of law.

2. The Industry Ministry shall assume the prime responsibility for, and coordinate with the Trade Ministry in, elaborating and submitting to the Government for promulgation the regulations on trading in cigarettes and liquors in compliance with the provisions of Clause 1 of this Article.

3. In the course of business activities, traders must constantly ensure the business conditions prescribed by law for goods and services subject to business restriction.

4. Basing themselves on the provisions of Clause 1 of this Article, the ministers and heads of branch-managing agencies shall have to provide specific guidance on each kind of goods or service subject to business restriction and on the grant of business permits.

Article 7.- Conditions for dealing in goods and services subject to conditional business

1. Activities of dealing in goods and services on the list of those subject to conditional business must satisfy the following conditions:

a/ Goods and services involved in business must fully comply with the provisions of law;

b/ Business entities must be traders defined in the Commercial Law;

c/ Business establishments must satisfy the requirements on techniques, equipment, facilities, business process and other standards prescribed by law; locations of business establishments must be in line with the planning on development of the network of establishments doing business with goods and/or services subject to conditional business;

d/ Managerial and technical staff and employees personally engaged in the sale and purchase of goods, and employees personally engaged in the provision of services must satisfy the requirements on professional qualifications and experience and be physically fit according to the provisions of law;

e/ Business traders must have certificates of satisfaction of business conditions in cases where such certificates are required by law to be granted by competent agencies.

2. The Trade Ministry shall assume the prime responsibility for, and coordinate with concerned agencies in, elaborating and submitting to the Government for promulgation regulations on dealing in petrol, oil and fuel gas in compliance with the provisions of Clause 1 of this Article.

3. In the course of business activities, traders must constantly ensure the business conditions prescribed by law for goods and services subject to conditional business.

4. Basing themselves on the provisions of Clause 1 of this Article, heads of branch-managing agencies shall have to provide specific guidance on each kind of goods or service subject to conditional business and on the grant of certificates of satisfaction of business conditions.

Article 8.- Inspection of business conditions

1. Contents of inspection of business conditions:

Traders dealing in goods and services subject to business restriction or those subject to conditional business must submit to the inspection by competent agencies of the business conditions and the compliance with business conditions in the course of business activities.

2. Modes of inspection of business conditions:

a/ Periodical inspection: Inspection shall be conducted in each period of time of the observance of business conditions for goods and/or services which have been registered by traders for business. Ministers and heads of branch-managing agencies shall set and publicize time for conducting periodical inspection;

b/ Unexpected inspection: Inspection shall be conducted when traders show signs of failure to comply with the prescribed conditions.

3. Ministers, heads of branch-managing agencies and presidents of provincial/municipal People's Committees shall have to direct functional agencies in organizing the inspection of observance of business conditions by traders according to the provisions of Articles 6 and 7 of this Decree.

Article 9.- Handling of violations

1. Traders as well as other organizations and individuals engaged in trade-related activities in Vietnam that commit one of the following acts of violation shall, depending on the nature and seriousness of their violations, be administratively handled or examined for penal liability according to the provisions of law:

a/ Dealing in goods and/or services banned from business, except for the cases specified in Clause 2, Article 5 of this Decree;

b/ Dealing in goods and/or services subject to business restriction or those subject to conditional business but failing to satisfy the business conditions or failing to comply with all business conditions prescribed by law in the course of business activities;

c/ Leasing or lending their business licenses or certificates of satisfaction of business conditions;

d/ Adding, erasing or modifying contents in their business licenses or certificates of satisfaction of business conditions;

e/ Doing business at variance with the contents stated in their business licenses or certificates of satisfaction of business conditions;

f/ Continuing to conduct business activities after having been deprived of their business licenses or certificates of satisfaction of business conditions or having such licenses or certificates withdrawn;

g/ Violating other provisions of this Decree and relevant laws.

2. Cadres and civil servants who abuse their positions and powers to act in contravention of the provisions of this Decree and relevant provisions of law shall, depending on the nature and seriousness of their violations, be disciplined, administratively sanctioned or examined for penal liability. If damage is caused, compensations therefor must be paid according to the provisions of law.

Article 10.- Implementation effect

1. This Decree takes effect 15 days after its publication in "CONG BAO."

2. This Decree replaces the Government's Decree No. 11/1999/ND-CP of March 3, 1999, on goods banned from circulation, commercial services banned from provision, goods and commercial services subject to business restriction or conditional business; and Decree No. 73/2002/ND-CP of August 20, 2002, adding goods and commercial services to List 1 of goods banned from circulation and commercial services banned from provision and List 3 of goods and commercial services subject to conditional business, promulgated together with the Government's Decree No. 11/1999/ND-CP of March 3, 1999.

Article 11.- Implementation responsibilities

1. Ministers, heads of ministerial-level agencies, heads of Government-attached agencies and presidents of provincial/municipal People's Committees shall have to implement this Decree.

2. The Trade Minister shall have to oversee and supervise the implementation of this Decree.